Attorney sued over Parretti deal

A Cook Islands corporation headquartered in Brisbane, Australia, has sued a Southern California lawyer for mishandling its claim for $ 40 million in premiums allegedly owed by Giancarlo Parretti arising from his takeover of MGM/UA in 1990.

According to a suit filed by Century Insurance Ltd. in L.A. Superior Court, Parretti purchased a performance bond from Century to guarantee a $ 175 million loan from Credit Lyonnais Bank Nederland N.V. To pay for the bond, Parretti pledged 30 million shares of MGM stock, the suit said.

Parretti never paid the premium on the bond, and Credit Lyonnais, as escrow holder, has refused to release the stock, the suit said. The bank and the bond company sued each other.

Gary L. Marsh, hired by Century to represent it, allegedly did not file critical documents, and Credit Lyonnais was granted summary judgment on its claims.